Theoretical Economics Paper

The Firm as a Communication Network - (Now published in 'Quarterly Journal of Economics' CIX(4) (December 1994), pp.809-839. Reprinted in Mark Casson (ed.). 'The Theory of the Firm'(Edward Elgar Publishing, 1997).

Patrick Bolton and Mathias Dewatripont

In this paper the internal organisation of firms is reduced to the organisation of a communication network. In the presence of information communication and processing costs it is important to design rules guiding which ...Read more...